Freedom can mean a lot of different things to different people.
On recent episodes, we have spoken about how entrepreneurship, in this way, shares a lot in common with the FIRE (Financially Independent, Retire Early) community.
One of the tenets of FIRE philosophy is ‘The 4% Rule’, which is the practice of saving and investing enough money to allow you to withdraw 4% of that income every year to live on.
In order for that rule to work, though, you would need to save 1 million dollars to live on a modest income of $40,000 annually. That can be a tall order for people who are on a small salary, especially those with families.
Enter Jase Rodley. Jase recently wrote a piece called The 40% Rule, which addresses this head-on. The 40% Rule is an investment strategy that allows people to concentrate on returns from modest investments, while still allowing themselves to “stay in the game”.
On today’s episode, Jase discusses The 40% Rule, the business that he is currently building, and how that experience has informed his investment strategies.
Listen to this week’s show and learn:
- Jase’s experience in the world of “digital real estate”. (7:38)
- The difference between an Investor mindset and an Operator mindset. (13:49)
- What The 40% Rule is and how Jace developed it. (18:10)
- How the life that you want to build for yourself could very well be possible. (29:36)
- Why 40% might actually be a conservative estimate. (34:49)
Mentioned in the episode:
- Before the Exit – Our New Book
- TMBA Masterminds
- Sponsor the TMBA Podcast
- The Dynamite Circle
- The DC Podcast
- Help Us Choose a New Name for the TropicalMBA Podcast
- DC BKK
- Dynamite Jobs
- TMBA 378: “If at First You Don’t Succeed, Try Try Try Again.”
- TMBA 304: The Power of Under Optimization
- TMBA 460: Are We Being Honest About the True Cost of Bootstrapping a Business?
- Jase Rodley
- The 40% Rule
- Mr. Money Mustache
- Millennial Revolution
- 1,000 True Fans by Kevin Kelly
- Justin Jackson
- Jungle Scout
- Mark Brenwall
This week’s sponsor:
This week’s episode is brought to you by Empire Flippers. Empire Flippers are the leading specialists in helping entrepreneurs buy, sell, and invest in online businesses. Whether you are looking to buy or sell, Empire Flippers’ dedicated team will make sure you are supported at every step of the process. As a very special gift, the Empire Flippers are offering a free business valuation (A $300 value) exclusively to listeners of this show. All you have to do is visit EmpireFlippers.com/TMBA for more details.
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Thanks for listening to our show! We’ll be back next Thursday morning 8AM EST. Cheers, Dan & Ian